BTC/USD: Keep an eye on this breakout!What’s up guys and welcome to my profile, my name is Gianni and today I’m going to analyse the BTC/USD, trying to translate the market information with a full technical analysis on different time frames perspectives.
For a better understanding of my short BIAS, let’s have a quick look on the monthly timeframe:
A couple of months ago, a strong bullish pressure, pushed the price up, as you can see the bullish green candle, breaking to the upside an interesting resistance level, reaching almost the level 70k for the first time.
The market is now retracing back and retesting the previous resistance currently turned into support.
We still have 22 days before the end of this monthly candle, but overall from this perspective, the market is bearish.
Switching to the weekly timeframe:
The market broke the ascending trendline that worked quite good as a dynamic support during the last 5 months, and its now retesting the area.
The second last bearish candle shows a great shadow, this is a clue that on the level 40k we still could find long pending orders ready to try to push the price up again.
Let’s focusing on this specific situation having a look on the daily timeframe:
As you can see in the chart, the price has been following a descending channel since the beginning on November, few doji candles are a sign of market indecision, and considering the retest of the trendline on a monthly support zone, there is a good possibility to see a bearish continuation.
Finally back to the 4h timeframe:
A strong bearish movement to the downside is getting now a correction, forming an interesting flag just around the 0.50% of Fibonacci retracement, a possible sign of market continuation.
Considering the overal bearish market, before to plan my short position I will be waiting for a breakout of this pattern, looking for a good entry point with RRR at least 1:2 or greater on the retest of the flag.
A breakout of this pattern to the upside would invalidate my considerations for this trade.
If you enjoy this trade idea, support my work with a thumb up and don’t forget to follow my profile for more detailed technical analyses!
Trade safe and responsibly,
Gianni
DISCLAIMER
Please note the views are not investment advice and should be used only for educational purpose
